You might know how you think of your business or what it is all about, but others don’t. If you are putting together a business plan, or trying to get funding support, or just trying to do some marketing–having a good description of what your company is about (as well as who is involved) will be imperative.
So, what should a company description look like? You don’t want your company description to be confusing and convoluted, but you need to say more than just the name of your business and your web site. An “official” company description should include the type of business you are, in addition to your name: a sole proprietorship, Limited Liability Corporation, etc., who the owner is (you) and what you sell or what services you provide. Include the industry or other details that will help people understand what your business does. Some company descriptions also include information about the customer base–who is buying or using the products or services. This can be especially important in a business plan where you will need to demonstrate a sound understanding of your target market.
In addition to these things, you can also say something about your budget–you can say something like: “with sales of $100,000 in the first year” or “doubling profits in the first three quarters.” In a business plan, or for potential investors, your company description will need to say something about the size and finances of you business.
Other things to include: history and basic structure of the business, what made you decide to start your business and what your future plans are. As you may imagine, this company description does not have to be extremely wordy–you can say most of what you need to say in a well-written paragraph. You can then use this in your business plan, on your web site, and in other materials.